Stratechery Regulators and Reality
Sep 1, 2021
Dive into the complexities of the FTC's antitrust lawsuit against Facebook and the challenges of proving monopoly status. Discover how personal social networking services are uniquely defined, and the controversies surrounding Facebook's acquisition of WhatsApp. Explore the competition in social media, questioning the FTC's understanding of market dynamics. Analyze recent court rulings on antitrust claims and the importance of economic evidence. Lastly, consider the friction between regulation and innovation, advocating for a shift toward market-driven solutions.
AI Snips
Chapters
Transcript
Episode notes
Facebook's Flawed Antitrust Case
- The FTC's antitrust case against Facebook is flawed because it doesn't reflect market realities.
- Facebook lacks monopoly power due to intense competition from various other online services.
Politics and Pricing in the FTC Case
- Judge Boesberg hinted at the FTC's political motivations in dismissing the initial case.
- Facebook's lack of pricing power and inability to exclude competitors further weakens the FTC's argument.
Government vs. Tech Industry Capacity
- The tech industry has demonstrated remarkable capacity and capability, particularly during the pandemic.
- Government intervention, however, has been less effective, raising concerns about its ability to regulate tech effectively.